Sunday, December 11, 2011
Y Combinator Vs TechStars: Whose Companies Are Bringing In More Funding?
[Here's a look at how startups backed by Y Combinator or TechStars compare in terms of funding, based on the data available in CrunchBase. It's written by Edmar Ferreira, a data scientist and founder of a data analysis startup called EverWrite. He writes about making data work on makeandthink.com.] Y Combinator and TechStars are two of the first seed-stage venture funds, and they've each had some successful companies. But how can we analyze how they're doing so far? One way is acquisitions, but there's not always complete information about who sold or for how much (and anyway, most of them haven't sold yet). Another metric would be valuations -- are companies becoming more valuable over time? -- but we also don't have good access to that. What we can do is look at the amount of money raised by the companies that participated in these programs. This is not a perfect metric of success, but it's an interesting enough signal because most of these companies need funding during their early stages as they build their products and find markets. If they are making enough progress, investors will put in more money.